Gupta-owner Jaguar Land Rover supplier in talks with lenders

Sanjeev Gupta, head of GFG Alliance

Part of Sanjeev Gupta's metals empire is holding talks with its lenders to avoid collapsing into administration.

Liberty Aluminium Technologies employs 250 people across sites in Coventry, Witham and Kidderminster and is a supplier to Jaguar Land Rover.

The firm was put up for sale recently as part of attempts by Mr Gupta to refinance his beleaguered GFG Group.

Mr Gupta also recently put much larger plants in Stocksbridge, West Bromwich and France up for sale.

GFG Alliance said it had been exploring "strategic options" regarding the future of Liberty Aluminium Technologies and was in talks with "four interested parties".

It said talks had "focused on identifying new owners which would provide a sustainable future for the business."

The firm said it was "also in discussions with LAT's main creditor to give it the time to conclude that process effectively."

News of talks specific to LAT were first reported by Sky News.

The BBC has learned that government officials have not yet been involved in these talks despite assuring MPs and unions that it was monitoring the situation at GFG very closely.

The UK government rejected a request for £170m in public money to prevent collapse.

• How metal tycoon Sanjeev Gupta built his empire

• Gupta empire facing UK fraud probe over Greensill

Mr Gupta's empire has been in dire financial straits since the group's main financial backer Greensill Capital went bust in early March.

Since then, the Serious Fraud Office has launched an investigation into suspected fraud, fraudulent trading and money laundering. GFG says it is co-operating.

GFG Alliance employs 35,000 people at companies stretching from Wales to Australia. Its Liberty Steel arm in the UK has about 3,000 staff.

The company's reliance on Greensill caused many to worry that it might itself be at risk following the finance firm's demise. GFG is in talks with finance firms about providing emergency loans.

Mr Gupta was once hailed as the saviour of British steel when his company bought a struggling steel mill in South Wales, saving it from likely closure. Liberty Steel then went on to snap up several ailing UK plants and turn them around.

GFG now operates in 30 countries, and has revenues of about £20bn.